The ASX-listed owner of InterPrac Financial Planning, Sequoia Financial Group, has told the exchange it had no prior knowledge of ASIC’s action.
In an update before close of market on Monday afternoon, the company responded to an inquiry from the ASX asking for further confirmation of when the company was aware ASIC would be taking it to court.
The company launched share buybacks after its share price dived after ASIC announced it was suing InterPrac, MWL Financial Services on SQM Research on Thursday, 13 November 2025. ASIC distributed its announcement via its email list at 9.17am.
Sequoia said it had received contact from a representative of Maddocks Lawyers on Wednesday,12 November seeking the correct person to service ASIC notices to and the regulator declined to offer any additional information.
The official correspondence came at 8am on 13 November to head of legal, risk and compliance Justin Harding.
Managing director Garry Crole was informed “within 10 minutes” of receiving an email at 9.28am and the company sought to update the market as soon as possible, with the group going into a trading halt at 10.20am.
Crole told shareholders at the company’s AGM last week he expects the InterPrac licensee will receive fines and compliance restraints as a consequence of ASIC’s proceedings.
The $1.2 billion collapse of Shield and First Guardian has left the retirement savings of approximately 11,000 people up in the air and ASIC has alleged two InterPrac authorised representatives were responsible for the majority of the clients that had been moved into the products.
ASIC commenced stop orders against the Shield and First Guardian funds due to concerns of mismanagement of investor money, including the funding of pet investment projects of the directors or for personal expenses including luxury cars and mansions.
The regulator alleged that advice firms received payments from the Shield and First Guardian funds who in turn used lead generation services to funnel customers into the funds without factoring in their best interests.
One of those advisers, Ferras Merhi, is alleged to have received payments from the funds to help market the products as well as receiving inflated loans to buy his businesses.
Crole has lobbied for the trustees involved to remediate clients; so far Macquarie agreed with ASIC to remediate Shield clients on its platform, but Equity Trustees will fight ASIC in court.
Netwealth has applied for government assistance to remediate consumers, while Equity Trustees and Diversa Trustees are expected to do so as well.
But Netwealth and Macquarie have since decided to restrict new business from InterPrac advisers onto their respective platforms.
